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According to CBSnews, Airbnb says New York City has reversed a $2,400 fine for a man who rented out a room in his apartment through the Airbnb vacation rentals site.

Nigel Warren, who was fined in May when a New York judge said he violated a state law prohibiting short-term rentals, appealed the ruling and this week the Environmental Control Board took his side. The board declared that short-term rentals are in line with the law so long as a permanent occupant is present. (Warren was obviously out when his room was rented, but his roommate was not.)

The law in question is meant for large companies trying to convert entire apartment buildings into illegal hotels. New York lawmakers say they are not targeting individuals.

Sen. Liz Krueger (D-N.Y.), who sponsored the 2010 law that outlaws apartment rentals less than 30 days in New York State, has said that companies like AIrbnb aren't making the consequences clear to their users.

In a statement, AIrbnb says the incident illustrates how unclear the law actually is, and that it will "work to clarify the law and ensure New Yorkers can share their homes."